Elon Musk Calls Twitter ‘The World’s Largest Non-Profit’
Elon Musk seems to have let the reality sink in that owning Twitter (TWTR) – Get Free Report isn’t all peaches and cream.
The social media platform’s most popular troll used a play on words to illustrate the financial spot the company he purchased last year is in. “Say what you want about me, but I acquired the world’s largest non-profit for $44 billion lol,” Musk tweeted
Of course, Musk is joking — while Twitter is not currently profitable, it is not a nonprofit organization. By definition a nonprofit organization, or non-business entity, is an organization that uses all funds outside of overhead to address a societal issue for public benefit, rather than turning a profit.
Musk reportedly took on personal loan debt of about $13 billion in order to finance his $44 billion purchase of Twitter. This debt is held in a margin loan that uses a chunk of his shares of Tesla as collateral.
He may not regret purchasing Twitter, but in December, Musk did come to the realization that securing funding through a margin loan may not have been the most sound financial decision.
“When there are macroeconomic risks, it is generally wise to avoid using margin loans on any company,” Musk tweeted late last year.